Comesa allows Coca-Cola to resume distribution talks
COMPETITION: Coca-Cola has received a nod from Comesa to effect a distribution deal, halted in April, with third party distributors in four African countries including Kenya.
Comesa Competition Commission (CCC) had temporarily stopped the distribution deal between Coca-Cola Beverages Africa (CCBA) and third party distributors in Kenya, Comoros, Ethiopia, and Uganda saying it restricted and penalised the distributors from engaging in passive sales.
In a statement, the commission said it has given CCBA the green light to resume the deal after the soda manufacturer proposed satisfactory measures to remedy the harm and on condition it implements the measures.
“The commission determined that the proposed undertakings made by CCBA were satisfactory to remedy the likely harm.
Therefore, in accordance with rule 62 of the Comesa Competition Rules, the commission authorised the distribution agreement subject to the fulfillment of the undertakings,” said the CCC in a statement.
In March last year, Coca-Cola announced that it would suspend a clause within its agreements with distributors that allowed it to set prices for distributors of non-alcoholic drinks after Comesa complained that so doing subjected consumers to higher prices.